Session 8

FFELP UPDATE FOR

SCHOOLS

Mark Putman
NCHELP
 FFELP UPDATE FOR SCHOOLS
Collaborative Efforts
ƒCommon Record: Commonline
ƒMeteor
ƒMeteor and Mapping Your Future
ƒTERP
ƒSchool Advisory Group
ƒWhat’s on the Horizon…
 FFELP UPDATE FOR SCHOOLS
Collaborative Efforts
ƒCommon Record: CommonLine
– Background
– Goal
– Technology
– Progress
 FFELP UPDATE FOR SCHOOLS
Collaborative Efforts
ƒMeteor
– What is Meteor
– Version 3.0
• Student Access
• Comprehensive Report Screen
• Customer Service Comprehensive Screen
 FFELP UPDATE FOR SCHOOLS
Collaborative Efforts
ƒMeteor & Mapping-Your-Future
– Disaster Recovery & Business Resumption
– Collaborative exploration for better service
to students
– Visit us at NASFAA
 FFELP UPDATE FOR SCHOOLS
Collaborative Efforts
ƒ TERP – Total Enrollment Reporting
Process
– Offered by the National Student
Clearinghouse (NSC)
– NSC would be a servicer for Guaranty
Agencies to fullfill the GA responsibility of
providing enrollment data to lenders and
lender servicers
 FFELP UPDATE FOR SCHOOLS
Collaborative Efforts
ƒNCHELP Electronic Standards Committee
School Advisory Group
– Provides school counsel and experience on
electronic initiatives and planning
– School Summit provided explanation of ESC
efforts to encourage participation
– See our website
www.nchelp.org/committees/e_standards/ES
CSchoolAdvisoryGroup/elecstradvgrp.htm
 FFELP UPDATE FOR SCHOOLS
Collaborative Efforts – What’s on the
Horizon…
ƒData Transport Standards
– NCHELP ESC and its Advisory Teams, ED
FSA, FAMS Providers, ELM and others
– Identify common, open source tools and
protocols to meet community needs for
batch file and XML based real-time data
flow to set a standard
 FFELP UPDATE FOR SCHOOLS
Collaborative Efforts - What’s on the
Horizon…
ƒDocument Imaging
– Standardized Format
– Common Transport Method
ƒE-Signature
– Developing standards for “after” the signature
ƒTrading Student Data
– Financial Aid, Admissions, Registrar
– Guarantors, Lenders, Servicers
 Technical Assistance
We appreciate your feedback and
comments. We can be reached at:

Phone: 202 822-2106

Fax: 202 822-2142
Email: jmartin@nchelp.org
mputman@nchelp.org
 FFELP Update for Schools

FSA Financial Partner

Services
 Organizational Structure
Federal Student Aid
Federal Student Aid

COO

Ombudsman Policy Liaison & Implementation

FSA Application, School Elig. & Delivery Borrower Services

Financial Partners Services Chief Financial Officer

Enterprise Performance Mgmt Chief Information Officer

Worforce Support Specialist Communications Management

 Financial Partner Services
ƒ Partner Services Group
ƒ NSLDS
ƒ Partner Systems Group
ƒ State Agency Liaison
 Financial Partner Services
ƒ Eastern Region
• New York, Boston
ƒ Northern Region
• Chicago
ƒ Southern Region
• Dallas, Atlanta
ƒ Western Region
• San Francisco
 Financial Partner
Services Regional Office
Responsibilities
ƒImplementation and oversight of
program and financial reviews
ƒProvide technical assistance
ƒIdentify and analyze major issues
ƒ Develop national priorities, goals, and
guidelines for stability monitoring
 Financial Partner Eligibility
Oversight and Monitoring
Form
Form ofof Oversight
Oversight
; On-Site
; On-Site program
program compliance
compliance reviews
reviews of
of Guaranty
Guaranty
Agencies
Agencies by Financial Partners (comprehensive or
by Financial Partners (comprehensive or
focused)
focused)
; On-Site
; On-Site program
program compliance
compliance reviews
reviews of
of Lenders/
Lenders/
Servicers
Servicers by
by Guaranty
Guaranty Agencies
Agencies and/
and/ or
or Financial
Financial FSA Financial
Partners
Partners (comprehensive
(comprehensive or or focused)
focused) Partners
; Review
; Review of
of 33rd party
rd
party Lender/
Lender/ Servicer
Servicer audits
audits
; Review of Guaranty Agencies annual financial
; Review of Guaranty Agencies annual financial
statements
statements
; Investigations
; Investigations
Guaranty
Additional
Additional Indicators
Indicators forfor Intervention
Intervention Agencies
; Change
; Change in in legal
legal requirements
requirements
; FP
; FP Data
Data Mart,
Mart, Scorecards
Scorecards
; FSA
; FSA Ombudsman
Ombudsman and and other
other complaint
complaint resolution
resolution
; Cohort
; Cohort Default
Default Rates
Rates
; OIG investigation or
; OIG investigation or instruction
instruction
; Forms
; Forms 2000
2000 or or LAP/LARS
LAP/LARS anomalies
anomalies
; NSLDS
; NSLDS monthly
monthly benchmark
benchmark reporting
reporting
; GAO
; GAO Studies
Studies
Lenders Servicers
 Financial Partner Eligibility
Overview of Responsibilities
ƒ Compliance Reviews
ƒ Review of Data Anomalies
ƒ Annual Audits and Financial Statements
ƒ Training and Partnership
ƒ Lender Application Changes
Financial Partner Eligibility
Overview and Monitoring

Financial Partners
(FY03)

Active Lenders 3,734

Guaranty Agencies 36

Secondary Mkt
33
Lenders

Loan Servicers 41

TOTAL 3,844
 Financial Partner Eligibility
Overview and Monitoring

Activity FY02 FY03

FP Program Review of GA and Lenders 387 539*

Lender Reviews by GA 225 332

Review of GA Financial Statement Audits 36 36

Review of Lender Audits 329 206

Review of Servicer Audits 34 35

* - 498 Lender, 18 GA, 23 Servicers

 Review Findings
Lender/Servicer Findings
ƒNSLDS Reporting Discrepancies
ƒIncorrect Interest Calculations
ƒInadequate Due Diligence in Collections
ƒIncorrect Separation Date Information
 Review Findings
Guaranty Agency Findings
ƒ Inadequate Disaster Recovery Plan
ƒ Improper Use of Restricted Funds
ƒ Account Maintenance Fees
ƒ Default Aversion Fees
ƒ Minimum Cash Reserve Ratios
ƒ Incorrect Separation Date Information
 FFELP Update for Schools

FFELP Value Added

Service and Trends
 Technical Assistance
We appreciate your feedback and comments.
We can be reached at:
Judy Martin:
Phone: 202 822-2106
Fax: 202 822-2142
Email: jmartin@nchelp.org
Ann Maria Fusco:
Phone: (212) 264-8143
Fax: (212) 637-0772
Email: ann.maria.fusco@ed.gov
Conwey Casillas:
Phone: (202) 466-8621
Fax: (202) 466-8643
Email: ConweyC@EFC.org